I am assigning Agnico Eagle Mines Ltd. (NYSE:AEM) a positive risk/reward rating. The positive rating is anchored by Agnico Eagle’s history of disciplined investment, its premium mine portfolio, and the planned merger with Kirkland Lake Gold (NYSE:KL).
Risk/Reward Rating Positive
The merger with Kirkland Lake Gold is a transformational moment for Agnico Eagle. Kirkland Lake adds three world-class mines with top-tier economics. Two of the mines are in Canada and one is in Australia, which are two of the most attractive mining jurisdictions in the world. The proximity of the two Canadian mines to Agnico Eagle’s existing infrastructure creates a $2 billion opportunity from operational leverage alone over the coming decade.
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